SIPC President Defends Net Equity Approach

Law360, New York (January 19, 2010, 6:18 PM EST) -- Securities Investor Protection Corp. President Stephen Harbeck has defended the company's plan to use the net equity method of calculating payments to victims of Bernard L. Madoff's Ponzi scheme, calling “ridiculous” investors' claims that SIPC is pursuing that plan out of concern for its own financial health rather than for investors' good.

“We've been saying since day one that we believe [net equity] is the way to do the greatest good for the greatest number consistent with the law,” Harbeck told Law360 in a telephone interview...